OAR 603-042-0015: Department Oversight over Promotion and Research

(1) The Department has the duty to review, and either approve or disapprove plans and projects recommended by a commodity commission for commodity promotion and research under ORS 576.066, 577.125 and 578.025. The Department’s review will ensure that the plans or projects are: (a) Factual; (b) Not disparaging to other commodities; and (c) Consistent with the purposes of ORS 576.051 to 576.584, 577, and 578. (2) In order to assist with the Department’s review under section (1) of this rule commodity commissions must: (a) Submit to the Department two copies of a detailed operational plan describing plans and projects for commodity promotion and research to be undertaken, contracted for, or otherwise funded (in whole or in part) over the next fiscal year. An operational plan submitted under this section shall include, if known and as applicable: (A) An outline of the message to be communicated through commodity promotion or research, including the target audience; (B) The objective of the commodity promotion or research; (C) The manner in which the commodity promotion or research is to be communicated, for example print ads, radio, mailings, e-mail, websites; (D) The entity that will undertake the commodity promotion or research; and (E) A description of how the Commission will evaluate the effectiveness of the promotion and how the objectives of the research will be met. (b) Scientific research plans or projects that will be the subject of grant agreements do not have to be included in the operational plan described in (a) of this section as long as the grant agreements include the information required by (2)(a)(B), (D), and (E) of this rule. (3) Each Commission shall submit an operational plan under section (2)(a) of this rule within 60 calendar days after its budget hearing. A Commission may request an extension of time from the Department for good cause shown. (4) If a significant new plan or project for commodity promotion or research was not included in the operational plan described in subsection (2)(a) of this rule the Commission must submit an amendment to the operational plan to the Department for review under subsection (1) of this rule. (5) The Department will review an operational plan submitted under (2)(a) of this rule in accordance with the criteria in section (1) of this rule, and approve, approve with modifications, or disapprove the operational plan, in writing, within 21 business days of receipt of the plan. (6) A Commission shall include a clause in all contracts, grants and any other arrangement for payment for promotion or research that reserves to the Commission the right to approve a final communication prior to its dissemination. A Commission shall also reserve the right to refuse payment for work performed, unless a final communication has been approved. A Commission may consult with the Department prior to approval of a final communication in order to ensure that the communication is consistent with Section (1) of this rule. (7) To the extent feasible, any commodity promotion paid for with commission funds, including promotion carried out by a contractor or grantee, shall include an identification statement such as: “paid for/paid in part by the Oregon _______ (insert name of commission), an agency of the State of Oregon.” (8) If the Department approves with modifications, or disapproves an operational plan or a communication submitted for review under subsection (2) of this rule, the Department shall explain the basis for its modifications or disapproval and shall give the Commission an opportunity to request that the Department reconsider its decision. A request for reconsideration must be in writing, must be received by the Department within 14 business days of the day the plan or communication was modified or disapproved, and must include the basis upon which the Commission believes the Department's modification or disapproval was in error. The Department will act on the request for reconsideration within 14 business days of its receipt. (9) If a Commission enters into a contract, grant or otherwise contributes funds to an entity to do commodity promotion or research, the Commission may submit evidence to the Department that the United States Department of Agriculture (USDA) engages in oversight and control substantially equivalent to that the Department undertakes under subsection (1) of this rule. After an examination of this evidence, the Department may waive its review under subsection (1) of this rule if it concurs that a substantially equivalent degree of governmental oversight and control will occur. (10) This rule does not apply to a Commission that has adopted a rule under ORS 576.372 or 578.216 providing for a refund. (11) For purpose of this rule: (a) “Commodity commission or commission(s)” means a commodity commission listed in ORS 576.062 , the Oregon Beef Council established in ORS 577 and the Oregon Wheat Commission established in ORS 578. (b) “Commodity promotion” means any action taken to present a favorable image of the commodity to the general public or to the food and agriculture industry for the purpose of improving the competitive position of the commodity and stimulating the sale of the commodity. (A) Without limiting the generality of the foregoing, “commodity promotion includes (i) Providing information to consumers that is designed to enhance the image or sale of the commodity; (ii) Consumer Education; (iii) Nutrition Education; (iv) Providing funding to another person or entity to carry out any of the above. (c) “Consumer education” means any program or action utilizing or funding public relations, advertising or other means devoted to educating the general public or the food and agriculture industry about the desirable characteristics of the commodity and directed toward increasing the demand for the commodity. (d) “Research” means any type of test, study, or analysis. Research may include research concerning how to enhance the image or sale of the commodity, as well as research concerning use, production, product development, quality, nutrition, or other characteristics of the commodity. (12) For the 2004-05 fiscal year, a Commission shall submit an operational plan under section (2)(a) within 60 calendar days of the rule becoming effective. A Commission may request an extension of time from the Department for good cause shown.